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CLF Q3 Earnings Beat Estimates, Revenues Up Y/Y on Higher Steel Prices
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Key Takeaways
CLF's Q3 adjusted EPS of 28 cents beat estimates by 16.7%, while revenues rose 18.5% to $5.61 billion.
Cleveland-Cliffs' steelmaking cash margin surged to $685 million as average steel selling prices rose 14.1%.
CLF expects Q4 adjusted EBITDA of $715 million and projects the metric to exceed $4 billion in 2027.
Cleveland-Cliffs Inc. (CLF - Free Report) reported third-quarter 2026 adjusted earnings of 28 cents per share, beating the Zacks Consensus Estimate of 24 cents by 16.7%. The company had posted an adjusted loss of 45 cents per share in the year-ago quarter.
Revenues rose 18.5% year over year to $5.61 billion, surpassing the consensus estimate of $5.58 billion by 0.6%. Higher steel selling prices, increased shipment volumes and improved cost performance supported the results. Steel shipments rose 3% year over year to 4.15 million net tons.
Consolidated cost of goods sold increased 7.7% year over year to $5.15 billion from $4.78 billion. Selling, general and administrative expenses rose to $153 million from $130 million. Restructuring and other charges declined to $1 million from $3 million.
Cleveland-Cliffs Inc. Price, Consensus and EPS Surprise
Steelmaking revenues increased 19.4% year over year to $5.45 billion from $4.56 billion. The segment generated a cash margin of $685 million, up from $205 million in the prior-year quarter, reflecting stronger pricing and improved operating performance.
The average net selling price per net ton of steel products was $1,177, up 14.1% from $1,032 a year earlier. The metric also increased 4.7% sequentially from $1,124 in the second quarter of 2026.
External steel sales volumes increased 3.1% sequentially from 4.025 million net tons. Hot-rolled products accounted for 46% of third-quarter shipments, followed by coated products at 31%, cold-rolled products at 15% and plate and stainless and electrical products at 4% each.
Financial Position of CLF
Cliffs ended September 2026 with cash and cash equivalents of $77 million, up from $57 million at the end of 2025. Long-term debt stood at $7.65 billion compared with $7.25 billion as of Dec. 31, 2025. Total liquidity was $3.2 billion at the end of September.
Cleveland-Cliffs’ Outlook
Cleveland-Cliffs expects fourth-quarter 2026 adjusted EBITDA of approximately $715 million, representing a sequential increase of 16.8%. Higher steel pricing is expected to support performance, partially offset by seasonal factors, planned maintenance outages, increased input costs and incentive compensation accruals.
Management also expects adjusted EBITDA to exceed $4 billion in 2027, based on recently negotiated customer contracts and prevailing steel price forecasts. The company cited reduced steel imports, extended lead times and improving domestic market conditions as favorable factors supporting its outlook.
Cliffs believes several initiatives aimed at strengthening future earnings are progressing more favorably than previously anticipated. Management also expects Stelco's contribution to adjusted EBITDA to increase as the Canadian operation shifts its production emphasis toward hot-rolled steel.
CLF’s Price Performance
Shares of CLF have gained 1% over the past year compared with the 49.2% rise in its industry.
Image Source: Zacks Investment Research
CLF’s Zacks Rank & Other Key Picks
CLFcurrently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Basic Materials space are Reliance, Inc. (RS - Free Report) , Avino Silver & Gold Mines Ltd. (ASM - Free Report) and Avient Corporation (AVNT - Free Report) .
The Zacks Consensus Estimate for RS’ 2026 earnings is pegged at $23.70 per share, indicating a 66.2% year-over-year surge. RSshares have gained 49.1% over the past year.
The Zacks Consensus Estimate for ASM’s current fiscal-year earnings is pinned at 28 cents per share. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 75%.
The Zacks Consensus Estimate for AVNT’s 2026 earnings is pegged at $3.2 per share, indicating a year-over-year rise of 13.48%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 3.4%.
View the Zacks #1 Rank List
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CLF Q3 Earnings Beat Estimates, Revenues Up Y/Y on Higher Steel Prices
Key Takeaways
Cleveland-Cliffs Inc. (CLF - Free Report) reported third-quarter 2026 adjusted earnings of 28 cents per share, beating the Zacks Consensus Estimate of 24 cents by 16.7%. The company had posted an adjusted loss of 45 cents per share in the year-ago quarter.
Revenues rose 18.5% year over year to $5.61 billion, surpassing the consensus estimate of $5.58 billion by 0.6%. Higher steel selling prices, increased shipment volumes and improved cost performance supported the results. Steel shipments rose 3% year over year to 4.15 million net tons.
Consolidated cost of goods sold increased 7.7% year over year to $5.15 billion from $4.78 billion. Selling, general and administrative expenses rose to $153 million from $130 million. Restructuring and other charges declined to $1 million from $3 million.
Cleveland-Cliffs Inc. Price, Consensus and EPS Surprise
Cleveland-Cliffs Inc. price-consensus-eps-surprise-chart | Cleveland-Cliffs Inc. Quote
CLF's Steelmaking Business Highlights
Steelmaking revenues increased 19.4% year over year to $5.45 billion from $4.56 billion. The segment generated a cash margin of $685 million, up from $205 million in the prior-year quarter, reflecting stronger pricing and improved operating performance.
The average net selling price per net ton of steel products was $1,177, up 14.1% from $1,032 a year earlier. The metric also increased 4.7% sequentially from $1,124 in the second quarter of 2026.
External steel sales volumes increased 3.1% sequentially from 4.025 million net tons. Hot-rolled products accounted for 46% of third-quarter shipments, followed by coated products at 31%, cold-rolled products at 15% and plate and stainless and electrical products at 4% each.
Financial Position of CLF
Cliffs ended September 2026 with cash and cash equivalents of $77 million, up from $57 million at the end of 2025. Long-term debt stood at $7.65 billion compared with $7.25 billion as of Dec. 31, 2025. Total liquidity was $3.2 billion at the end of September.
Cleveland-Cliffs’ Outlook
Cleveland-Cliffs expects fourth-quarter 2026 adjusted EBITDA of approximately $715 million, representing a sequential increase of 16.8%. Higher steel pricing is expected to support performance, partially offset by seasonal factors, planned maintenance outages, increased input costs and incentive compensation accruals.
Management also expects adjusted EBITDA to exceed $4 billion in 2027, based on recently negotiated customer contracts and prevailing steel price forecasts. The company cited reduced steel imports, extended lead times and improving domestic market conditions as favorable factors supporting its outlook.
Cliffs believes several initiatives aimed at strengthening future earnings are progressing more favorably than previously anticipated. Management also expects Stelco's contribution to adjusted EBITDA to increase as the Canadian operation shifts its production emphasis toward hot-rolled steel.
CLF’s Price Performance
Shares of CLF have gained 1% over the past year compared with the 49.2% rise in its industry.
Image Source: Zacks Investment Research
CLF’s Zacks Rank & Other Key Picks
CLFcurrently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Basic Materials space are Reliance, Inc. (RS - Free Report) , Avino Silver & Gold Mines Ltd. (ASM - Free Report) and Avient Corporation (AVNT - Free Report) .
RS currently sports a Zacks Rank #1 (Strong Buy), while ASM and AVNT carry a Zacks Rank #2 each. You can see the complete list of today’s Zacks #1 Rank stocks here
The Zacks Consensus Estimate for RS’ 2026 earnings is pegged at $23.70 per share, indicating a 66.2% year-over-year surge. RSshares have gained 49.1% over the past year.
The Zacks Consensus Estimate for ASM’s current fiscal-year earnings is pinned at 28 cents per share. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 75%.
The Zacks Consensus Estimate for AVNT’s 2026 earnings is pegged at $3.2 per share, indicating a year-over-year rise of 13.48%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 3.4%.